The current commercial building stock of more than 70 billion sq ft provides a fertile market opportunity for U.S. Energy Services Companies (ESCOs), and a recent report from Boulder, Colo.-based Pike Research, "The U.S. Energy Service Company Market," forecasts that the ESCO business will achieve double-digit compound annual growth rates (CAGRs) over the next several years. The American Recovery and Reinvestment Act of 2009 (ARRA) is stimulating the ESCO business by injecting approximately $11 billion into the industry through incentives, grants, and lending opportunities. Although the federal building sector remains strong, new financing mechanisms are also being introduced to the private sector, which, under certain circumstances, could trigger significant new growth in the ESCO market.
The Pike Research report examines the commercial buildings market by end-use, identifying the solution opportunities for ESCOs and highlighting key industry drivers. The report analyzes the frame work for rapid growth in this market, reviewing federal programs, laws, regulations, and pending legislation, while also revealing key barriers for the privately owned commercial building market. Market forecasts include base case and aggressive growth scenarios through 2020.
Key questions addressed in the report include:Source: Pike Research